Tenneco Clean Air IPO Opens! ₹3600 Cr Giant Sees Muted Start - Subscription Open Now!

Tenneco Clean Air India IPO Overview: The Initial Public Offering (IPO) of Tenneco Clean Air India Ltd. commenced on November 12, 2025, aiming to raise ₹3,600 crore. It experienced a subdued opening, with subscriptions reaching 0.11 times by 11:40 AM on the first day. Retail investors subscribed 0.12 times, and High Net Worth Individuals (HNIs) subscribed 0.24 times. The IPO is structured entirely as an Offer for Sale (OFS), involving the sale of 90.7 million shares by the selling shareholder. The subscription window will close on November 14, 2025.

Company Profile: Established in 2018 and a subsidiary of the global Tenneco Inc., Tenneco Clean Air India Ltd. is a key player in designing and manufacturing clean air and powertrain components for the automotive sector. Its product portfolio includes emission control systems such as catalytic converters, diesel particulate filters, mufflers, and exhaust pipes, crucial for automakers to adhere to emission standards like Bharat Stage VI. The company boasts 12 manufacturing facilities across India and employs 145 R&D professionals focused on innovation, sustainability, and regulatory compliance.

Investment Rationale & Valuation: Leveraging its parent's extensive intellectual property (5,000 patents, 7,500 trademarks), Tenneco India designs tailored products for Indian Original Equipment Manufacturers (OEMs). Analysts from SBI Securities and Reliance Securities recommend investors to 'Subscribe' to the IPO. They highlight the company's strong market position, global lineage, diversified products, and strategic integration with OEMs. The company is expected to benefit from the premiumisation trend in the Indian auto industry and tightening emission norms. At the upper price band of ₹397, the IPO is valued at approximately 29 times its FY25 Price-to-Earnings (P/E) ratio and 19.3 times Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/Ebitda).

Lot Size and Investment: Investors can apply for a minimum of 37 shares, with subsequent bids in multiples of 37. Retail investors require a minimum investment of ₹14,689 for one lot (37 shares). The maximum investment for retail investors is ₹1,90,957. For Small HNIs, the minimum investment is ₹2,05,646, and for Big HNIs, it starts at ₹10,13,541.

IPO Objectives: Notably, Tenneco Clean Air India Ltd. will not receive any proceeds from this IPO, as it is an OFS. All proceeds will go to the Promoter Selling Shareholder after deducting expenses.

Financial Performance: Between FY24 and FY25, the company reported an 11% decline in revenue but a significant 33% rise in Profit After Tax (PAT). For the period ending June 30, 2025, total income was ₹1,316.43 crore, PAT was ₹168.09 crore, and Ebitda was ₹228.88 crore. For the full FY25, total income was ₹4,931.45 crore, with PAT at ₹553.14 crore, an increase from FY24. Total assets grew to ₹2,831.58 crore in FY25.

Important Dates: The IPO allotment is expected by November 17, 2025, with tentative listing on BSE and NSE scheduled for November 19, 2025. The price band is set at ₹378 to ₹397 per share.

Grey Market Premium (GMP): The Grey Market Premium (GMP) for Tenneco Clean Air India IPO is reportedly ₹79, suggesting an expected listing gain of approximately 19.90%.

Lead Managers: JM Financial Ltd, Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India) are the book-running lead managers.

Impact This IPO is a significant event in the Indian automotive ancillary sector. Its subscription levels, listing performance, and the company's financial health will be closely watched by investors interested in the auto components industry and companies focused on emission control solutions. The performance of the IPO can influence investor sentiment towards similar offerings in the sector. Rating: 7/10

Difficult Terms Explained: IPO (Initial Public Offering): This is when a private company sells its shares to the public for the first time to raise money. OFS (Offer for Sale): In an OFS, existing shareholders sell their shares. The company itself doesn't get any money from this. NIIs (Non-Institutional Investors): These are investors who bid for shares worth more than ₹2 lakhs, like wealthy individuals or companies. Retail Investors: Individual investors who apply for shares up to ₹2 lakhs. Bharat Stage VI norms: Emission standards set by the Indian government to control air pollution from vehicles. R&D (Research and Development): Activities done by companies to create new products or improve existing ones. OEMs (Original Equipment Manufacturers): Companies that build products, like vehicles, based on designs from other companies. P/E (Price-to-Earnings) ratio: A valuation measure showing how much investors pay for each rupee of a company's earnings. EV/Ebitda (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization): A valuation metric comparing a company's total value to its operating profit, excluding certain expenses. Lot Size: The minimum number of shares an investor can buy in an IPO. HNIs (High Net-Worth Individuals): Individuals with a large amount of money, often investing significant sums in the stock market. RHP (Red Herring Prospectus): A preliminary document detailing a company's IPO offering, filed with regulators. Listing Date: The first day a company's shares are traded on a stock exchange. GMP (Grey Market Premium): An unofficial indicator of demand for an IPO, showing the price at which shares trade in the grey market before listing. Book-running Lead Managers: Financial firms that manage the IPO process for the company. Registrar: The entity managing IPO applications and share allotments. Revenue: The total income a company earns from its business activities. PAT (Profit After Tax): The profit a company makes after all expenses and taxes are paid. Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operational profitability before accounting for financing, taxes, and asset wear.